Yes, based on action in 2025, the 30% federal solar tax credit (Section 25D) is set to expire on December 31, 2025, after President Trump signed the "One Big Beautiful Bill" (OBBB). This accelerated the previous 2032 expiration date, meaning systems must be installed by the end of 2025 to qualify.
Yes, under the "One Big Beautiful Bill" signed by President Trump in July 2025, the federal residential solar tax credit (Section 25D) officially expired for expenditures made after December 31, 2025, meaning new residential solar installations no longer qualify for that 30% federal credit as of January 1, 2026, though existing or in-progress projects before the deadline generally remain eligible.
In early July 2025, Congress voted to repeal the 30% federal tax credit for homeowners who install solar on their homes. The repeal takes effect January 1, 2026.
Starting in 2026, the 30% Federal Solar Investment Tax Credit (Section 25D) will no longer be available for residential solar projects. That's a significant change for the U.S. solar industry and naturally raises an important question for homeowners and contractors alike: What's next for solar?
If you want to own your solar system and claim the 30% federal tax credit, the clock is ticking: install by the end of 2025. Even without the credit, California homeowners still stand to gain by going solar due to the state's sky-high utility rates.
Officially defined under Section 25D of the U.S. tax code, the 30% residential solar tax credit officially expires on December 31, 2025, with no phase-down or extension. To qualify, homeowners must have their systems fully installed and operational before the solar tax credit 2025 deadline.
The 30% federal tax credit for homeowners adding rooftop solar (Section 25D) very publicly expired on December 31st, 2025 — but that doesn't mean you can't still get 30% off your solar installation.
Yes, many individual provisions of the Trump-era Tax Cuts and Jobs Act (TCJA) from 2017 are set to expire at the end of 2025, reverting tax law to pre-2017 levels unless Congress acts, with key changes including the standard deduction, SALT deduction cap, and estate tax rules set to change, although legislation like the "One Big Beautiful Bill Act" (OBBBA) has since extended some of these cuts into the future, changing the original expiration cliff.
Despite that growth, Trump's tariffs still negatively impacted the industry, according to the Solar Energy Industries Association (SEIA): Tariff increases led to 62,000 fewer solar jobs. Installation prices for homeowners increased. $19 billion in new private sector solar investment was lost.
Yes, President Donald Trump directed the EPA to repeal the Obama-era Clean Power Plan (CPP) and officially replaced it with the less stringent Affordable Clean Energy (ACE) rule in 2019, though legal challenges later struck down the ACE rule. The Trump administration's actions dismantled the CPP's carbon emission limits for power plants, replacing them with standards focused on efficiency improvements at individual plants, not broader grid shifts.
As the incentive landscape changes and eligibility becomes more complex, many people are asking the same question: “Is solar and energy storage still worth it without the full federal tax credit? The answer is yes. But, the way homeowners see value has shifted.
EPA kills Biden-era grant program to boost solar energy for lower-income households. WASHINGTON (AP) — The Environmental Protection Agency on Thursday terminated a $7 billion grant program that was intended to help pay for residential solar projects for more than 900,000 lower-income U.S. households.
The executive order comes after President Trump signed his 'One Big Beautiful Bill' into law earlier this year. The new law eliminates federal tax credits for clean energy projects that do not begin construction by July 2026 or come online by the end of 2027.
The Trump administration issued an executive order on July 7, 2025, titled Ending Market‑Distorting Subsidies for Unreliable, Foreign‑Controlled Energy Sources, aimed at accelerating implementation of the recently enacted One Big Beautiful Bill Act (OBBBA).
If the individual tax cuts expire, taxpayers in all income groups would face higher and more complicated taxes. Machinery and equipment expensing is a key provision that, if allowed to expire, would especially harm capital-intensive industries like manufacturing.
At the end of 2025, the individual portions of the Tax Cuts and Jobs Act expire all at once. Without congressional action, 62 percent of filers could soon face a tax increase relative to current policy in 2026. At the same time, the price tag for extending the 2017 Trump tax cuts is in the trillions.
Deduction for seniors (Section 70103)
Effective 2025 through 2028, individuals age 65 and older may claim an additional $6,000 deduction. This is in addition to the standard deduction for seniors available under existing law. Applies per eligible individual (or $12,000 for a married couple if both spouses qualify).
As President Trump continues his second term, the future of America's solar incentives has taken a definitive turn. On July 4, 2025, the One Big Beautiful Bill (OBBB) was signed into law, officially ending the 25D federal solar tax credit for homeowners on December 31, 2025.
The bill ends the residential tax credit of 30% for any clean energy expenses, such as solar panels, paid for after December 31, 2025. Homeowners who install solar panels on or after January 1, 2026 will not receive the 30% federal tax credit. Crucially, the 30% credit only applies to solar panel purchases, not leases.
The "33% rule" in solar panels refers to two main concepts: a fire-safety code requiring wider firefighter access paths if panels cover more than 33% of a roof's area, and an oversizing guideline allowing up to 33% more panel wattage than an inverter's AC rating for better energy harvest, due to real-world conditions being less ideal than lab ratings. A less common meaning relates to the theoretical efficiency limit of single-junction solar cells (around 33%).